Miller seeking Toronto Hydro sale funds to go toward public housing
Use of $75 million from sale should be debated, councillor argues
The sale of Toronto Hydro's fibre-optic and downtown wireless network will pump $75 million directly into repairs of city-owned housing said Mayor David Miller in a news conference late Friday afternoon.
"I'm announcing today that the $75 million share will be invested directly in Toronto public housing subject to council's approval," said Miller, flanked by officials from the city-owned electricity utility and the city-owned housing company.
"This new investment is a critical step to maintaining our city's public housing in proper condition. The $75 million in new money will be enough to pay for the work to cover 25 per cent of the TCH repair backlog."
Miller made the announcement just hours after Toronto Hydro inked the deal to sell Toronto Hydro Telecom to the cable giant Cogeco for $200 million. The city's share of that, after taxes, fees and debts are covered, amounts to $75 million.
And while Toronto Council will ultimately decide where that money gets spent, Miller made it clear he wants to see the money spent on the city's housing repair backlog.
He said that will mean 5,000 units will be able to be completely refurbished, and 10 buildings will be made more energy efficient.
Toronto Community Housing has an estimated repair backlog as high as $350 million, a backlog downloaded to Toronto by the provincial government shortly after amalgamation in 1998.
The money will mean the company can accelerate repairs and rely less on debt to finance them.
Miller said the city has a "moral duty" to improve housing for the city's tenants, who number 58,500.
"I would say to people living in Toronto Community Housing, finally your needs are being met," said Miller.
"Finally we will invest in what you deserve - to live in simple dignity."
The Wi-Fi network, meanwhile, will continue to serve some city needs. As part of the sale, Toronto will retain access to three strands of fiber optic network which will be used by the city's library system and community organizations.
Meanwhile, Cogeco will be able to invest in the network and the downtown wireless network in a way that provincial law prohibited Toronto Hydro from doing.
Ward 34 (Don Valley East) Councillor Denzil Minnan-Wong applauded the sale, but said council needs to debate where exactly the $75 million will be spent.
"If this is about setting priorities, there are many urgent priorities the city has - not only fixing our housing stock," said Minnan-Wong. "Repairing our crumbling infrastructure, using the money to build needed community services, making the city safer - those are all priorities where we don't have enough resources now. I think it's a little premature to just identify one particular place where the money should be allocated."
The move met with the approval of the Toronto Board of Trade.
"This is one of the tools the city should be looking at in terms of putting it on a sustainable fiscal path," said Glen Stone, the board's public affairs director. "It's not just sales - there's leases there's partnerships. And the money that comes out of that should be focussed on city priorities, things that will make the city more attractive to investment a better place to work, a better place to live."
